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The ATO hasnannounced the latest benchmarks for small businesses. Based on the data fromn2014 income tax returns and business activity statements, the benchmarks covernover 1.3 million small businesses.
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ATO AssistantnCommissioner Matthew Bambrick said one of the great things about the benchmarksnwas that they gave a lot of small-business owners peace of mind.
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“If a smallnbusiness is inside the benchmark range for their industry and the ATO hasn’tnreceived any extra information that may cause concern, they can be confidentnthat they probably won’t hear from us”, Mr Bambrick said.
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Mr Bambricknsaid some small businesses outside the benchmark range may simply benincorrectly registered, or the business intent may have changed since startingnup. “These types of small administrativenerrors can be easily fixed by checking the previous year’s tax return to seenwhich business industry code was used and then updating it in the next returnnand on the Australian Business Register”, Mr Bambrick said.
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TIP: Business owners can use thenbenchmarks to compare their businesses with other similar businesses. They cannalso be used by the ATO to identify businesses that may not be meeting theirntax obligations.
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Important: Clients should not act solely on the basis of the material contained in Update. Items herein are general comments only and do not constitute or convey advice per se. Also, changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before acting in any of the areas. This update is issued as a helpful guide to clients and for their private information.